Every 1 to 15 years, Cointelegraph Consulting provides the latest scoop on cryptomoney price action and justification in its Market Insights newsletter. Here is a preview of one of this month’s issues.
Crypto asset prices have risen in recent weeks, with several altcoins recording gains reminiscent of the great digital asset bubble of 2017. Assets such as Chainlink (LINK) and Band Protocol (BAND) have triple-digit percentage gains.
Bitcoin (BTC), the industry’s pioneering asset, has also shown significant upward action. The asset rose slightly above USD 12,0000 on August 2 before falling back over USD 1,000 in the same 24-hour period. August 10 saw BTC return to the $12,000 level, again facing rejection, sustaining a subsequent drop of several hundred dollars. However, general sentiment in the area of investment and trade in cryptosystems remains bullish.
Traditional financial players also continue to enter the digital assets industry through Bitcoin, with intelligence giant MicroStrategy as one of the newest entrants. By purchasing more than 21,000 BTCs, the company has adopted the currency as its reserve asset.
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Bitcoin whales could have sold a share of their coffers. Recent data shows only 15,912 Bitcoin addresses with 100 or more BTCs, the lowest number in five years. Such network data implies that the large Bitcoin participants may be selling rather than accumulating.
The Grayscale Bitcoin Trust saw an increase in investor interest after March
In terms of sentiment, however, the active pioneer of cryptomonies shows an important change from the pessimism seen earlier. Over the past two weeks, the market has expressed a significant bullish tone, exceeding the standard deviations of 1.2 during Bitcoin’s most recent run to USD 12,000.
The data also shows an increase in the amount of dollars moving toward the central exchanges through the stablecoin fixed to the USDC, a signal that has often proven to be a precursor to a bullish Bitcoin price action.
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In contrast, the relationship between market value and the realized value of Bitcoin, or MVRV, seems problematic, registering a 30-day value of 1.15 on August 2. This essentially means that short-term Bitcoin investors boasted an average gain of 15% across the board.
On a separate front, Ethereum is on par with Bitcoin in terms of trading volume. Bitcoin records 3.4 times the trading volume seen on Ethereum’s blockchain, a shrinking lead, according to figures seen in early August.
3 reasons why MicroStrategy adopted Bitcoin and why others will do so
Read the full edition of the newsletter here to get the full portion of each scoop, with graphics and images.
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